Rectification of order passed u/s 144 of it act possible?

[Utkarsh Lohia]

The case of the Assessee was selected for scrutiny u/s 143(3) and Assessee did not received any notice of assessement and intimation isuued by the AO due to shifting of residence address. The AO issued a show cause notice which was also not received by the assessee and due to no response from the assessee the AO completed the assessment u/s 144 of the IT Act (BEst Judgement Assessemnet) disallowing exemption claimed by the assessee u/s 54 for selling and buying new house due to lack of documents of new house. So can this order be rectified u/s 154 by producing the purchase documents of the new house to the AO?

[DR.MARIAPPAN GOVINDARAJAN]

In my view you can file appeal before the Appellate Authority with the prayer to remand the case to the Adjudicating Authority for not receiving the show cause notice and other communications due to the shifting of your residential address.

[wig sinbad]

in terms of your query:

1. The Income Tax Actu/s 154 (1) (a) provides the power to amend any order passed by an Income Tax Authority under the provisions of this act. orders have to be passed within the time limit provided u/s 154 (8)

2. Alternatively you can apply under section 264 to the Commisioner / Pr Commisioner. But there is no provision of appeal thereafter. The order is binding.

3. You can also appeal u/s 246A(1) (a) to the jurisdictional Commisioner ( Appeals) and submit the evidence to him which you were unable to submit earlier to the Assessing Officer. I invite to peruse Rule 46A of the Income Tax Rules, 1962

AI Summary

Rectification of best judgment assessment: seek amendment or appeal to admit omitted purchase documents for reconsideration. A best judgment assessment made after the assessee failed to receive notices may be amended by seeking rectification of the assessing officer's order to permit submission of omitted purchase documents; alternatively, administrative revision or an appeal seeking admission of belated evidence and remand for fresh adjudication are available procedural routes.